Question: 1. Explain what present value calculations tell us. 2. State the formula for finding the present value of a future amount. 3. State the formula

1. Explain what present value calculations tell us.
2. State the formula for finding the present value of a future amount.
3. State the formula for finding the present value of a future stream of payments.
4. Explain how businesses use present value when making investment decisions.
5. Describe the relationship between interest rates and present value.

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